Foreign institutional investors (FIIs) resumed buying Indian equities last week: they invested around Rs 827 crore net in equities. “The whole week markets were driven by Budget expectations, both Union and Rail. Some sectors rose due to Budget expectations and some registered a fall,” says Parag Shah-manager advisory, Sharekhan.

Sectoral performances were a mixed bag. The major gainers during the week were PSU and Consumer Durables: they rose 3.8 per cent and 3.6 per cent respectively.

“The potential divestment story may have pulled the PSU sector up. As far as consumer durables are concerned, when there is volatility or uncertainty in the markets, it becomes the favourite pick of investors,” says Shah.

The biggest losers that slipped into negative territory were Teck and IT: they declined by nearly 1.3 per cent and 1.4 per cent respectively during the week.

Inflation fell to minus 1.3 per cent for the week ended June 20, staying negative for the third consecutive week. The wholesale price index was (-) 1.14 per cent in the previous week. Crude oil price dropped nearly 3.4 per cent during the week. It is currently trading at $65.8 per barrel.

The markets have very high expectations from the Budget which is scheduled to be announced today. So, future movements in the markets will very much depend on the Budget.